An effective way to cut costs is to eliminate activities that do NOT improve the product attributes that customers value.

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By eliminating activities that do not add value to the product attributes that customers care about, a company can reduce costs without affecting the overall quality or value perceived by customers. This approach is known as value-based cost reduction and focuses on optimizing the use of resources to create the most value for customers. By identifying and eliminating wasteful or redundant activities, companies can streamline their operations and improve their profitability.

An Effective Way to Cut Costs Is to Eliminate Activities